Bank of England Admits Interest Rate Hikes Are Intended to Increase Unemployment

The Bank of England's policy of raising interest rates has a more sinister purpose than just controlling inflation. It is also intended to reduce demand, weaken the economy, and increase unemployment.

This is not an accidental side effect, but rather how monetary policy is supposed to work. The central bank uses higher interest rates as a tool to redistribute income upwards, benefiting banks, wealthy savers, and owners of financial assets at the expense of mortgage holders, tenants, borrowers, and businesses.

The Bank's decisions are never politically neutral, and the use of high interest rates has real impacts on the level of activity in the economy. By reducing demand, they create higher unemployment as a deliberate outcome of their policy, despite claiming that lower inflation is supposed to lead to higher employment.